On Thursday, February 1, 2024, the New York Community Bank (NYCB) headquarters in Hicksville, New York, US, was featured in a photo by Bing Guan | Bloomberg | Getty Images. New York Community Bank announced a significant loss of 7% of its deposits in the month leading up to a capital injection of over $1 billion from investors, including former Treasury Secretary Steven Mnuchin’s Liberty Strategic Capital.
According to an investor presentation related to the capital raise, the bank’s deposits had decreased to $77.2 billion as of March 5, down from $83 billion on February 5. This decline occurred after Moody’s Investors Service downgraded the bank’s credit ratings to junk status.
In addition to the deposit loss, NYCB revealed that it would be reducing its quarterly dividend for the second time in the current year, dropping it to 1 cent per share from 5 cents, marking an 80% decrease. Prior to the bank’s troubling fourth-quarter earnings report, NYCB had paid a 17-cent dividend.
This is an ongoing story, and updates will be provided as they become available.
2024-03-07 08:39:14
Link from www.cnbc.com